HBA-KDB H.B. 573 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 573
By: Green
Ways & Means
3/15/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, property owned by this state or a political subdivision
of this state (property) is exempt from taxation if the property is used
for public purposes, unless the land is owned by the Permanent University
Fund or is agricultural or grazing land owned by the county for the benefit
of public schools. Property owned by a municipality that is only partially
located in a particular county may qualify for exemption and be removed
from the tax rolls of a county, but benefit only the political subdivision.
House Bill 573 authorizes a taxing unit to tax real property owned by a
municipality if the real property is located in a county in which less than
20 percent of the territory of the municipality is located. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 573 amends the Tax Code to authorize a taxing unit to tax real
property owned by a municipality if it is located in a county in which less
than 20 percent of the territory of the municipality is located.  The bill
provides that the governing body, in order to tax the property in a tax
year, must take official action, not later than January 1 of that tax year,
in electing to tax the property.  The governing body must also provide
written notice of its action to the chief appraiser of the appraisal
district that appraises property for the taxing unit in the territory in
which the municipal property is located.  The bill provides that taxing the
municipal property applies to all real property owned by the municipality
in that county and continues in effect for each subsequent tax year until
the election to tax the property is revoked by the governing body of the
taxing unit. 

EFFECTIVE DATE

January 1, 2002 if the constitutional amendment proposed by the 77th
Legislature, Regular Session, 2001, authorizes the ad valorem taxation of
real property that is owned by a city or town and that is located in a
county in which less than 20 percent of the territory of the city or town
is located.